KUALA LUMPUR: MBM Resources Bhd
posted a lower net profit for the first quarter ended March 31, 2023 (1Q 2023) at RM79.96 million versus RM89.28 million for the same quarter last year.
Revenue, however, surged by 16.2 per cent to RM555.79 million from RM478.51 million previously, it said in a filing with Bursa Malaysia today.
The automotive company said the better revenue was attributable to higher volumes in both motor trading and auto parts manufacturing divisions as carmakers increased production to fulfil the remaining Penjana bookings by the deadline on March 31, 2023.
It said the motor trading division closed the quarter with RM476.8 million in revenue, an increase of RM68.1 million or 16.7 per cent against the corresponding quarter last year, mainly driven by high vehicle sales volume, especially in Perodua and Volvo which ramped up production to fulfil bookings by end-March.
"The group's Perodua vehicle sales increased by 20 per cent against the corresponding quarter, while vehicle sales of Volvo also increased by 13.1 per cent.
"The group's after-sales revenue and margins likewise continue its upward trend with service throughputs volume increase by 19.2 per cent compared to the corresponding quarter,” it added.
The company said the auto parts manufacturing segment registered a revenue of RM78.4 million for the quarter under review which is RM9.1 million or 13.1 per cent higher than last year’s corresponding quarter, due to higher production volume pulled by all the carmakers to meet outstanding bookings.
Moving forward, MBM Resources said it is cautiously optimistic about the outlook given the end of the Penjana sales tax exemption period, increases in prices of materials and new vehicles, a higher interest rate environment and the ongoing disruptions in the supply of semiconductor chips faced by the industry.
"However, new model launches, especially electric vehicles, are expected to stoke customers’ interest in purchasing new vehicles this year.
"Perodua’s continuing strong order book is anticipated to assist in sustaining the group for the near term,” it said.
Despite the mixed outlook, the group would focus on closer engagements with customers and prospects, more targeted spending, optimised cost management and operational efficiency improvements, it added. - Bernama
